Bitcoin slid below $65,000 over the weekend before stabilizing Monday as traders on prediction market Polymarket increased bets that the cryptocurrency’s pullback has further to run.
The odds of Bitcoin (BTC) falling below $55,000 climbed to 72% on Polymarket Monday, with $1.2 billion in volume on platform.
Other bearish bets include price declines below $50,000 and $45,000, with odds of 67% and 47%, and trading volumes of $170,000 and $1.4 billion, respectively.
Bitcoin briefly fell below $65,000 on Sunday before recovering at around $65,900 at the time of writing, according to TradingView data.
Bitcoin’s market cap also slid to roughly $1.31 trillion, dropping behind the Vanguard S&P 500 ETF (VOO) and falling to 15th globally amid the ongoing crypto market rout, according to 8marketcap.
Bitcoin’s market cap is down 25% year-to-date
Bitcoin’s market capitalization has fallen by about $440 billion this year, roughly a quarter of its value, with prices sliding from around $90,000.
The total crypto market cap has seen a similar drop, shedding about $760 billion, or 24.5%, according to CoinGecko data.
At $65,900, BTC has gained roughly 22% over the past five years, showing the asset’s volatility and reigniting questions about its role as an inflation hedge.
Many expect $55,000 to be the “ultimate market bottom”
Traders’ expectations that Bitcoin could drop below $55,000 align with views from analysts, major financial institutions and native market platforms.
Analysts at Standard Chartered project BTC could fall to $50,000 before potentially recovering toward $100,000, while CryptoQuant suggests $55,000 may represent the “ultimate market bottom.”
On Monday, CryptoQuant noted that Tether USDt (USDT) was under extreme liquidity stress, a signal reminiscent of the 2022 market bottom.
CryptoQuant also reported Saturday that stablecoin exchange flows indicate declining marginal buying power, with net USDT inflows to exchanges falling sharply from a one-year high of $616 million in November 2025 to just $27 million.
Related: Binance holds 65% of CEX stablecoin reserves as outflows cool
“This contraction indicates reduced liquidity ready to be deployed into crypto markets,” the firm said in a report shared with Cointelegraph.
Despite the persisting bearish sentiment, some analysts highlight Bitcoin’s long-term value. Advocate Pierre Rochard described it as the “most undervalued asset in the world” in a post on X on Sunday.
Similarly, a Coinbase survey found roughly 70% of institutional investors view Bitcoin as undervalued when priced between $85,000 and $95,000, noting its continued underperformance relative to precious metals and equities.
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